IBK chief vows to expand bank's assets to 500 tril. won by 2025

By Lee Yeon-woo

Industrial Bank of Korea (IBK) CEO Kim Seong-tae pledged to nurture the state-run bank to a target value of 500 trillion won ($378 billion) in total assets by 2025.

“IBK aims to become a top-notch international financial group while fulfilling our role as a key facilitator of private-led dynamic economic growth and closely communicating with government and policy financing institutions,” Kim said during a press meeting in Seoul on Tuesday commemorating his first 100 days in office.

“If we push ahead with the strategies according to the plan, I expect IBK's total assets to surpass 500 trillion won by 2025,” Kim said.

To achieve this goal, he vowed to increase global investments and propel IBK to become a “strong bank.”

“As part of our goal to double overseas profits from 126 billion won to 250 billion won by 2025, we will expand our global network through corporate conversions in Vietnam and corporate establishments in Poland. Additionally, we will provide support to small and medium-sized businesses seeking overseas expansion,” Kim said.

While highlighting the bank's role as a policy financing institution, Kim also promised to support small and medium-sized corporations and small business owners suffering from high interest rates.

Kim vowed to cut interest rates worth 1 trillion won and offer funding worth 200 trillion won. He pledged to fund 2.5 trillion won for startups with superior technology. One thousand corporations with innovative technologies will be discovered in the next three years, according to Kim.

“As a corporate citizen, we are committed to fulfilling our responsibilities by ensuring the protection of our customers and maintaining strong internal controls,” Kim said.

Kim also emphasized IBK's financial soundness, particularly in regard to the potential risks associated with real estate project financing.

“We have conducted a comprehensive review of IBK's project financing operations for two years,” Kim said. “We completed our visits to affiliated companies last week, and found that none of the subsidiaries, including those involved in securities and capital, have experienced any issues with project financing loans thus far.”